Report of the Local Government Efficiency Review Group

evenue were needed for the local government system, as well as the
need for increased cost recovery for services provided.
2.2.2 The Special Group’s report further proposed that domestic water
charges be reintroduced, arguing that pending the installation of
water metering in domestic dwellings, a flat rate fee could be
introduced, followed by a pay by use system. It also proposed that
water services be delivered though a national agency rather than the
local government system. The Special Group also proposed a
reduction in Exchequer support through the Local Government Fund,
and an overall reduction in current expenditure of 10%.
2.2.3 The Report of the Special Group recommended that the Local
Government Audit Service should transfer to the Office of the
Comptroller and Auditor General (C&AG) to ensure greater
coherence and uniformity in the auditing standards applied across
public bodies, and that the C&AG become the external auditor for all
bodies in receipt of significant amounts of public money.
2.2.4 The Special Group voiced concerns over the large number of small
local organisations that are in receipt of State funding to provide
services at local level, the potential for overlap, the difficulties in
measuring how the organisations help achieving specific objectives,
and concerns that the same organisation may be in receipt of funding
from different Government Departments and agencies.
2.2.5 Their report suggested that “a local appraisal step should be
introduced to ensure that the set of local organisations in a given
local authority area serves that area in the most efficient and effective
way. Instead of each local organisation submitting its funding
application to separate central Government Departments and
agencies, they would individually or in partnership with other
organisations submit applications to their local authority”. A shared
service structure could also be run by local authorities to support the
work of various local bodies.
2.3 Local Government Budgetary Situation and Income
2.3.1 Total local government current and capital expenditure in 2010 is
estimated at €8.5 billion. Net budgeted current expenditure
represents just under €4.7 billion of this amount. Current and capital
expenditures are funded in different ways.
2.3.2 Current expenditure is funded through a combination of commercial
rates, charges for goods and services, specific Government grants,
and funding from the Exchequer-funded Local Government Fund, as
shown in Figure 2.3 below.
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